But seriously, any company going BK would not bother to sell assests and make full payments on a debt up and into BK...they would save their assets and money and let a BK court peice apart their assets over the years, and they would be protected then by being able to keep some.
Also: why would BD foreclose on Atrinsic when they are making these full payments back to them - if they foreclose on Atrinsic and force them to go BK and seize their assets - they might just get half of the money owed to them - and that possibly years later and after expensive litigation. So if someone was paying you off a loan to you, had six months to do it, and after month two you were already 40% paid off: you would prolly be content, knowing your most likely going to get thefull amount with interest owed to you.
...
Which brings us to the CURRENT STATUS of where Atrinsic stands in terms of their debt to BD:
I believe they have already taken care of their 2nd payment which is due tomorrow:
$5,813,500 - $1,713,500 = $4,100,000 - $615k = $3,485,000 left
very positive news, near $2.3M gone ... and NOT issuing stock
Quote: Item 8.01 Other Events
On May 31, 2011, the Company sold to investors Secured Convertible Promissory Notes (the “Notes”) in the original aggregate principal amount of $5,813,500. As of the close of business on January 26, 2012, an aggregate principal amount of approximately $4,100,000 remained outstanding on the Notes. The Company intends to use the net cash proceeds of $615,000 received from its January 23, 2012 sale of certain short codes, domain names, trademarks and databases used in the Company’s subscription businesses to Mkono Media Corp. to further reduce its obligations under the Notes.
and:
"We are required to repay the Notes in six equal monthly installments commencing on December 31, 2011 and ending on May 31, 2012, either in cash or in shares of our common stock."
...so chargermane, they had to pay about a million each month, so thet would be $2 million as of tomorrow : but they have already raised and paid off about $2.3 million - so they are good until February 28th until next payment! This whole pps cCommon conversion really imo just gave them a month head start cash-wise to start paying the debt back: a good strategy for a company that did not have $5.8 million to give to BD when they defaulted their Notes in November....
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